Next Games Corporation Company Release January 10, 2019 at 09:30 a.m. (EET)
The Board of Directors of Next Games has authorized the company’s management to initiate a program to review the cost structure of the company’s operations and streamline its operational model, including initiating consultation proceedings concerning the company’s staff. The aim of the program is to achieve cost savings and increase operational efficiency and predictability of the company’s production processes in an effort to improve future profitability.
The program is expected to generate significant cost savings during the full year 2019 compared to 2018. Through the implementation of the program, the company estimates annual cost savings in the range of 4-8 million euros during the full year 2019.
In connection with the program and in accordance with the Finnish law, Next Games plans to initiate consultation proceedings covering the company’s operations and personnel in its entirety. The company estimates that the proceedings may result in the reduction of personnel or in significant changes in job descriptions and organizational setup. The proceedings will commence latest on 17 January 2019 and are estimated to continue for at least six weeks, unless concluded earlier. As of 31 December 2018, Next Games has 143 employees.
As reported in the company’s Q3 2018 business review, Next Games also assesses alternatives to strengthen its financial position, to secure future product development and to support the company’s marketing investments for future growth.
Next Games CEO Teemu Huuhtanen: “With a mandate from the Board of Directors, we have initiated a program to address both operational efficiency and costs, simultaneously as we are reviewing options to strengthen the company’s financial status through procuring additional financing. The actions we are taking today form a part of our efforts to transform into an agile and resilient team, while giving us the flexibility to invest in the future. We are committed to continue operating our current live games, The Walking Dead: Our World and No Man’s Land as well as to keep delivering our strategic goal of launching one game per year.”
Next Games’ Chairman of the Board, Petri Niemi: “After a challenging third quarter, the Board of Directors, in collaboration with the company’s management team, has initiated a program to bring focus to the company’s operations in an effort to strengthen the company’s financial status and improve future profitability.”
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About Next Games
Next Games (Helsinki Nasdaq First North: NXTGMS) is the first publicly listed mobile game developer and publisher in Finland, specializing in games based on entertainment franchises, such as movies, TV series or books. The developers of the critically acclaimed The Walking Dead: No Man’s Land redefines the way franchise entertainment transforms into highly engaging service-based mobile games. Next Games launched The Walking Dead: Our World on 12 July, which utilizes cutting edge AR technology and is powered by Google Maps. Currently Next Games is working on four new games based on popular entertainment franchises including a mobile game for the popular Blade Runner franchise. Next Games employs over 140 people and is based in Helsinki, Finland. For more information head to www.nextgames.com